Support
A price level where buying demand has repeatedly cushioned a decline — the floor the market keeps returning to.
Definition
Support is a horizontal price level or zone where demand is strong enough to interrupt or reverse a downtrend. Each time price approaches this level, buyers step in — absorbing selling pressure and pushing the price back up. The more times a level has been tested without being broken, the stronger traders consider it to be. Support is closely paired with resistance, and together they form the foundation of price action analysis.
Why it matters
Indian equity and F&O traders rely on support levels to plan entries and place stop-loss orders. On NIFTY or BANKNIFTY options, a well-defined support zone often coincides with high open interest at put strikes — option writers defend those levels, adding a self-reinforcing effect. When a support level breaks on high volume, it frequently flips into a resistance zone, a phenomenon known as role reversal. Recognising this shift helps traders avoid buying into a falling market at a level that no longer offers protection.
How it works
Traders identify support by drawing a horizontal line connecting two or more significant lows on a chart. The more touches a level records — especially if price bounced sharply each time — the more meaningful it becomes. Support can also emerge from round numbers (e.g., 22,000 on NIFTY), prior swing lows, gap fills, or moving averages. In practice, support is better thought of as a zone a few points wide rather than a single exact price, because markets rarely turn at the same tick twice.
Example
Suppose NIFTY 50 falls from 24,000 and stalls near 23,400 on three consecutive sessions, bouncing each time. A trader identifies 23,380–23,420 as a support zone. On the fourth test, they buy a NIFTY call option with a stop-loss placed just below 23,350. If price bounces again, the position profits; if it closes below 23,350, the support is considered broken and the trade is exited. This is entirely hypothetical — actual price levels will differ.
Spot support levels on live charts
Use TradePulse's option chain to see where put OI clusters align with chart support.